According to the data announced by the Istanbul Chamber of Industry (ISO) and IHS Markit; Manufacturing PMI declined from 54.4 to 51.7 in February. The manufacturing PMI index, which was 33.4 due to the economic recession caused by Covid-19 in April, recovered in the following months and had a growth position as of June. Although the growth rate lost momentum in February, the industry continues to remain in growth position. Although the production channels remain alive with a slower momentum, the gains in TRY in recent months have also eased the inflation pressures in terms of input costs for the sector.
If we look at the details of the PMI data; Production continued to grow despite the slowdown in new orders. The ongoing effects of the Covid-19 outbreak and ongoing shortages in raw material supplies are the reasons for the slowdown in new orders. This situation also causes prolongation of shipments and delivery times. On the other hand, the optimism felt about the economies due to vaccination is effective in keeping the production in a growth position. The rate of increase in employment maintains its strong course as production continues. Input costs are increasing, but the rate of increase has receded to its slowest point since July 2020. On the raw material costs side, the supply shortage and the increase in commodity prices have an increasing effect, while the recent appreciation of the TRY alleviates the currency-based cost pressures.
With the January PMI, it was seen that the industry made a rapid start to the year. This momentum eased somewhat in February. As the 4Q20 growth data announced today reveal, industrial production stands out as the strongest part of growth. Although the impact of financial conditions and updated epidemic factors caused some loss of momentum in February, growth continues. The impact of vaccination on global economies, access to raw material supply chains and the impact of this on shipping times, and the effects of expansion in economic activity on industrial production will continue to be monitored.
Kaynak: Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
